Technical Analysis for LTCUSD for 6th January 2022
Litecoin Breakout below $140 and the Bear Flag
Past Performance of LTC
Litecoin prices are under immense selling pressure, judging from the performance in the daily chart. At spot rates, LTCUSDT is within a bear breakout pattern, breaking below the former support (now resistance) at $140 confirming selling pressure of the wide-ranging bear bar of December 4.
Litecoin Technical Analysis
LTCUSDT price action overwhelmingly favors bears. After a period of choppy sideways movement, LTC crypto bulls failed to reverse steep losses of early December 2021, resulting in a bear flag.
This indecision turned to doom following the break below the primary support trend line and $140 on January 5. The breakout bar is specifically wide ranging and with high trading volumes indicating participation. Following the confirmation of this new trend formation, sellers are in control, presenting traders with entries for a potential move towards $130 in the short-term and $100 in the long haul.
What to Expect of LTC
Litecoin bears are in control and the break out of January 5 is a confirmation of the bear divergence from early December 2021. Then, LTCUSDT prices were printing higher highs. However, a taper in trading volumes and the failure of LTC crypto bulls to overcome losses early December 2021 and most recently December 28 swung to favor bears as a bear divergence pattern formed. If bears press on, LTC prices may tank to $130 or even $100 to retest H2 2021 lows.
Resistance level to watch: $140
Support level to watch: $130
Disclaimer: Opinions expressed are not investment advice. Do your research.
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